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Inheritance Tax Planner
Using the new Main Residence NRB

Using the new Main Residence NRB

The new Main Residence NRB started taking effect in April 2017. It requires assets that are listed as the client's main residence to be left to a direct descendant, this includes children, step-children, grand-children, etc.

To do this in our calculator, first you must add an asset that has the category of 'Property - Main Residence' and in the Planning already in place section, select 'Leave to Residual Estate'.

Once this has been done, in the Suggested Planning tab on the left-hand side, you will see this asset with a dropdown on the right. In this dropdown, select the option for 'Leave to Direct Descendant' and then click Save Changes.

For a full overview of how this works: UK Government Website on MRNRB

This measure introduces an additional nil-rate band when a residence is passed on death to a direct descendant.

  • This will be:
  • £100,000 in 2017 to 2018
  • £125,000 in 2018 to 2019
  • £150,000 in 2019 to 2020
  • £175,000 in 2020 to 2021

It will then increase in line with Consumer Prices Index (CPI) from 2021 to 2022 onwards. Any unused nil-rate band will be able to be transferred to a surviving spouse or civil partner.

The additional nil-rate band will also be available when a person downsizes or ceases to own a home on or after 8 July 2015 and assets of an equivalent value, up to the value of the additional nil-rate band, are passed on death to direct descendants.

There will be a tapered withdrawal of the additional nil-rate band for estates with a net value of more than £2 million. This will be at a withdrawal rate of £1 for every £2 over this threshold.

The existing nil-rate band will remain at £325,000 from 2018 to 2019 until the end of 2020 to 2021.

Jointly owned homes

If the asset is owned by both your clients jointly, on first death the asset will automatically be inherited by the spouse and the deceased client's Main Residence NRB will transfer to the spouse to be used on second death.

It is possible to utilise the planning option for 'Tenants in Common (Share to Direct Descendant)'. This will split the value of the property on first death and the part owned by the deceased client will leave the estate and make use of the new Main Residence NRB.

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Adding an asset

Adding an asset

To add an asset, click on the Assets tab on the left-hand side of the screen, and then click on the button that says 'Add Asset...' Once that is done, a pop-up window will appear asking for all of the required information needed to successfully create an asset.


What is asked for

  • Description - This is the name of the asset that will appear on the breakdown and reports
  • Category - This is the type of asset that the client owns, including: Property - Main Residence, Property - Other, Cash/Investments, D.C. Pension, Death in Service, Life Cover, Trading Business, Other, Discounted Gift Trust (DGT)
  • Asset Value - The monetary value of the asset at the time the forecast is created
  • Who owns this asset? - An asset can be owned by the client, jointly with the client and someone outside of the estate (Joint - Other), owned by the spouse, jointly between the client and spouse (Joint - Spouse) and jointly between the spouse and someone outside of the estate (Joint - Spouse & Other)
  • Net Growth Rate - The rate at which the asset value will change over the coming years of the forecast
  • IHT Planning already in place - This includes any planning that is ALREADY in place. These include: Leave to Residual Estate, Life Cover (Not to Spouse), D.C. Pension - EoW (Not to Spouse), Death in Service - EoW (Not to Spouse), BPR Investment (100% Relief), Agricultural Investment (both 50% and 100%) and Discounted Gift Trust (DGT)
  • Amount given to charity - This is any charitable donations that the client already has arranged to take place on their death. Values given as an amount are fixed whereas percentages are not.
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Editing an asset

Editing an asset

To edit an asset, open the Assets tab on the left-hand side of the screen. Once you can see the list of assets on your screen, click the green icon and this will open a pop-up box similar to that of the one that opened when you added the asset, but with all of the relevant values filled in.

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Adding a liability

Adding a liability

To add a liability, click on the Liabilities tab on the left-hand side of the screen, and then click on the 'Add Liability...' button. Once done, a pop-up window will appear asking for all of the required information needed to successfully create a liability.

What is asked for

  • Description - This is the name of the liability that will appear on the breakdown and reports
  • Liability Value - The monetary value of the liability at the time that the forecast is created
  • Is this liability linked to an asset? - The dropdown that appears has a list of each asset currently included in this forecast. By linking a liability to an asset, its value at the time of the owner's death will be taken from the value of the asset and therefore reduce its worth in the estate
  • Is this liability a loan/mortgage? - Once this checkbox is ticked, another section will appear asking for the remaining term of the loan and the interest rate
  • Net Growth Rate - The rate at which the value of the liability will change annually
  • Who owns this liability? - A liability can be owned by the client, jointly with the client and someone outside of the estate (Joint - Other), owned by the spouse, jointly between the client and spouse (Joint - Spouse) and jointly between the spouse and someone outside of the estate (Joint - Spouse & Other)
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Editing a liability

Editing a liability

To edit a liability, open the Liabilities tab on the left-hand side of the screen. Once you can see the list of liabilities on your screen, click the green icon and this will open a pop-up box simiilar to that of the one that opened when you added the liability, but with all of the relevant values filled in.

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What is suggested planning?

What is suggested planning?

Suggested Planning is the planning that you, as the adviser, would recommend putting into action in order to reduce your client's IHT bill. These typically abide by the 7-year rule, or 2-years in the case of BPRs and Agricultural relief.

Click here to see what planning options are available

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What IHT Planning options are available?

What IHT Planning options are available?

The new Inheritance Tax Calculator includes 8 kinds of planning that is currently in place and a further 17 options for you to utilise in order to reduce your client's IHT bill.

Planning already in place

  • Leave to Residual Estate - This planning option will leave a percentage of all assets with this planning to the client's spouse. This is directly linked to the slider that appears on the Assumptions tab when the client is set as married.
  • Note: Use this option if you would like to suggest some planning later on
  • Life Cover (Not to Spouse) - An asset with this planning is paid into a trust on death of the owner. It will never enter the estate without changing the planning to Levae to Residual Estate.
  • D.C. Pension - Expression of Wish (Not to Spouse) - An asset with this planning is paid into a trust on death of the owner. It will never enter the estate without changing the planning to Levae to Residual Estate.
  • Death in Service - Expression of Wish (Not to Spouse) - An asset with this planning is paid into a trust on death of the owner. It will never enter the estate without changing the planning to Levae to Residual Estate.
  • BPR Investment (100% Relief) - When selected, you can choose how long it will be until the asset is exempt from IHT with the options of: After 2 years, After 1 year and Immediately
  • Agricultural Invesment - When selected, you can choose how long it will be until the asset is exempt from IHT with the options of: After 2 years, After 1 year and Immediately. You can also choose if the asset is entitled to either 50% or 100% relief from IHT depending upon the type of property that they invest in
  • PET - Potentially Exempt Transfers are gifts from the estate that are potentially liable to IHT if the person gifting the asset dies within 7 years of making the gift. When selected, you can choose how long the PET has been in place for, ranging from 0 years to 7 years. The tax on these assets is calculated by taking a percentage of the asset and taxing that at the full 40% (or 36% in some cases).
  • For Example: A PET was made in 2015 and the client is predicted to die in 2019, therefore 60% of the asset is taxed at 40% making an effective rate of tax as 24%.
  • Discounted Gift Trust (DGT) - When selected, a section will appear asking how much the asset is liable for on the owner's death. This value is fixed and will not increase at the set growth rate.

Suggested Planning

  • Leave to Residual Estate - Much the same as for the existing planning, if selected the asset will be split according to the value set in the Assumptions tab.
  • Expression of Wish - Only visible for assets with the Category: Life Cover, D.C. Pension or Death in Service. When selected, a section will appear asking for where the asset goes on death of it's owner with the options: To Other (someone not in the estate) or Into Trust
  • Legacy to Spouse/Partner - When selected, on death of it's owner this asset will transfer into the spouse/partner's estate. This planning is only exempt between spouse's.
  • Legacy to Other - When selected, on death of it's owner this asset will leave the estate and be liable for IHT. This planning is used when a client would like to give assets to a beneficiary that is not the spouse/partner
  • Legacy to Direct Descendant - This planning option is only available for assets that have been set as a Main Residence. When selected, this asset will leave the estate on death, utilising the new Main Residence NRB. If the asset is jointly owned, it will transfer to the other party on first death and leave the estate on second death
  • Tenants in Common (Share not to Spouse) - This option is only available to jointly owned properties. When selected, the value of the deceased owner will leave the estate and will be liable to IHT
  • Tenants in Common (Share into Trust) - This option is only available to jointly owned properties. When selected, value of the deceased owner will leave the estate into a trust and will be liable to IHT
  • Tenants in Common (Share to Direct Descendant) - This option is only available to jointly owned Main Residences. When selected, the value of the owner will leave the estate and will use the new Main Residence NRB to reduce it's IHT liability
  • Legacy to Charity (On First Death) - When selected, a section will appear asking how much of the asset is to be left to charity on death of it's owner, or first death if the asset is jointly owned. The remaining value of the asset will be liable to IHT
  • Legacy to Trust - When selected, the asset will be transferred into a trust on death of it's owner and will be liable for IHT
  • Place into Trust (CLT/PET) - This planning is subject to tax if greater than £325,000 (although this is not taken into account in this calculator). When selected, the value of the asset will be placed into trust after 7 years. If the owner dies before this period, it is counted as a failed PET.
  • PET - When selected, this will start a PET from this year which will abide by the 7-year rule. See above for an example of how this is calculated
  • Gift to Charity - When selected, a section will appear asking how much of the asset is given to charity immediately.
  • Invest into BPR (100% Relief) - This planning is subject to the 2-year rule. When selected, a section will appear asking for where the asset is to go after death of it's owner
  • Invest into BPR (50% Relief) - This planning is subject to the 2-year rule and once passed 2 years the asset is liable for 50% of its value. When selected, a section will appear asking for where the asset is to go after death of it's owner
  • Invest into BPR (100% Relief) - This planning is subject to the 2-year rule and once passed 2 years the asset is liable for 100% of its value. When selected, a section will appear asking for where the asset is to go after death of it's owner
  • Invest into Discounted Gift Trust (DGT) - When selected, a section will appear asking for how much of the asset is liable for IHT. This value is fixed and will not increase with the growth rate of the asset
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How do I set which years each client is due to die in?

How do I set which years each client is due to die in?

On the Breakdown tab, there are one/two sliders depending upon your client's position. These sliders positions dictate the predicted year of death for the client.

For example - Example client is predicted to die in 2017, but his spouse is not predicted to die until 2020. The slider for Example client will be moved until the blue box is underneath 2017 and the orange box until it is underneath 2020.

Click here to learn more about what the outputs are shown on the Breakdown

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My client has an NRB transfer from a previous marriage

My client has an NRB transfer from a previous marriage

If your client is a widow/er, they are eligible to transfer the remaining NRB that was not used on their previous spouse's death. To do this, go to the Assumptions tab and tick the box that asks if the client is claiming a transfer of unused NRB from a previously deceased spouse. Once this is selected, a box will appear asking for how much NRB will be transferred.

Also, if the spouse/partner is claiming a transfer of unused NRB from previously deceased spouse's, there is a box asking for the amount options are under the respective questions in the Assumptions tab.

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How do I use the residual estate slider?

How do I use the residual estate slider?

When a client is listed as married, a number of options will appear including a slider asking for how much of the residual estate will be left to their spouse. If the client requests to split their estate by giving 20% to their spouse and the remaining 80% to other beneficiaries, you will need to drag that slider to 20%. or you could type the value into the box next to it.

The value that is left to the spouse is exempt from IHT due to Spousal-bypass trusts, any of the residual estate leaving the estate may be liable to IHT.

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I have two clients that aren't married

I have two clients that aren't married

The new Inheritance Tax Calculator is able to pass assets between two clients that aren't married, but want to know their current IHT position.

To do this, on the Assumptions tab on the left-hand side, tick the option that asks if the client has a partner (not married). An option will appear asking if the partner is able to transfer unused NRB from a previously deceased spouse, this can be left as 0 if they are not doing so. Then click Save Changes for this to take effect.

From this point, extra options that allow assets/liabilities to be owned by both partners and additional planning options to transfer assets between one-another on death.

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What values are shown on the breakdown?

What values are shown on the breakdown?

The outputs that appear on your screen on the Breakdown tab differ greatly depending on how you set up your forecast. Below are the two main structures that you will see.

For married/partnered clients

When there are two clients input into a forecast, such as married or partners, there are two deaths that need to be calculated. Underneath the 'mortality prediction' sliders and the 'Before/After Advice' toggle there will be two tables providing a summary of each client's IHT position in the year that they are predicted to die.

Beneath these summaries, there will be two tables denoting the breakdown of each asset. The values that are shown are those in the year in which second death occurs, except for the column that is marked 'Amount Liable to IHT (On First Death)' which is the value that was calculated for that asset on first death. Each of these rows has a coloured bar underneath the 'IHT Planning in Place' column which provides a quick indication of asset ownership.

For single clients

With single clients, only one set of values is needed to be shown, therefore underneath the aforementioned 'Before/After Advice' toggle, there is a single summary box explaining the client's IHT position on death and one/ two tables providing a breakdown of their assets/ liabilities in the predicted year of death.

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Can I see the effect of my suggested IHT planning?

Can I see the effect of my suggested IHT planning?

In short, yes. On the Breakdown tab on the left-hand side, underneath the 'mortality prediction' sliders there are two buttons saying, 'Before Advice' and 'After Advice'.

Before Advice

When Before Advice is selected, the only planning that is done on each asset are the ones that were entered in the initial input of the asset. This is to give the client an idea of how your suggestions will save them money.

After Advice

When After Advice is selected, the planning that you have suggested in the 'Suggested Planning' section will take action and reduce IHT liabilities and/or make assets exempt from IHT.

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How are liabilities taken into account?

How are liabilities taken into account?

Liabilities can be subtracted from assets in a number of ways, continue reading this page to ensure that you have set yours up correctly.

Linked liabilities

Linking a liability to an asset means that on death of a client, their share of that liability will come directly from the asset itself, thus reducing the value. In reality the value would not decrease, but in terms of calculations the value has to come from somewhere.

Unlinked Liabilities

In the case of liabilities that have not been linked to assets, the value does not directly come from an asset as this can lead to even more complicated calculations and complicated outputs. Therefore, these liabilities are paid off when the last client in the forecast passes and it is then taken from the total estate before any IHT liability is calculated.

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I would like to change the assumed value of CPI

I would like to change the assumed value of CPI

Consumer Price Index (CPI) comes into play once the forecast surpasses 2021, when the 'new Main Residence NRB' has reached its maximum defined value and then begins to increase with CPI.

From April 2021, the £2,000,000 threshold for tapering and the maximum additional NRB available increase with CPI.

To change the value of CPI in the new Inheritance Tax Calculator, in the top right-hand corner of the page there is an 'Options' dropdown. Under that dropdown there is an option for Advanced Options. Once clicked, a popup will appear with a slider for CPI that you can change to anything between 0% and 10%.

For Example: In 2021, if CPI is assumed to be 2% then the £2,000,000 threshold will increase by 2% thus making the threshold for this year £2,040,000 and the maximum NRB available increasing from £175,000 (2020) to £178,500.

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What's the difference between the planning I entered in creation and suggested planning?

What's the difference between the planning I entered in creation and suggested planning?

Planning that was entered on the initial input of the asset is the planning that is already in place before you have begun your planning.

Planning that you have chosen from the ‘Suggested Planning’ section are the methods in which you plan to reduce your client's IHT liability and will only take effect when viewing the ‘After Advice’ section of the Breakdown.

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What do the coloured bars for each asset indicate?

What do the coloured bars for each asset indicate?

The coloured bars underneath each asset's 'IHT Planning in Place' status represents to whom that particular asset is attributed. If the client, this will show as blue and conversely, if orange, it will be the spouse.

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How do I create a report?

How do I create a report?

As with all calculators on CashCalc, we have multiple buttons, both at the top of the screen and somewhere in the calculator itself that will create you a report with one to all of your forecasts for that one client.

In the Inheritance Tax Calculator, there is a button at the top right of the screen and as an option in tabs to the left-hand side of the screen.

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What is the Inheritance Tax Calculator?

What is the Inheritance Tax Calculator?

Our Inheritance Tax Calculator module includes the necessary tool to help you plan for both first and second deaths of couples with individual assets and liabilities.



Our Inheritance Tax Calculator includes:


  • Inheritance Tax Planner


For more information on our new pricing structure, click here.

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How do I request a trial?

How do I request a trial?

New users

If you’re a new user and would like to trial our Inheritance Tax Calculator, then you must register for a free CashCalc account, here. You will automatically be enrolled onto a trial of our core ‘Cashflow & Onboarding’ module.


You can take a trial of the Inheritance Tax Calculator by logging into your account and finding the module under ‘Plans’ in the ‘My Account’ section. Here, you can trial our range of plans as well as add them to your account subscription. 


Existing users

If you’re already a CashCalc user, then you can add a trial of the IHT Calculator module in the ‘Plans’ section under ‘My Account’.  


Your 28-day free trial

Your 28 Day Free Trial will allow you unrestricted access to the IHT plan for the entire trial period. This includes our downloadable Reports and Premium Support service.


Throughout the trial period, you will have the opportunity to upgrade your account and continue using the tool with no restrictions, beyond the 28 days. The IHT module costs an additional £30 per-month + VAT, with no contracts or tie-ins.  


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How can I add the tool to my package?

How can I add the tool to my package?

New users

If you’re currently undergoing a trial or are new to CashCalc, you can add the IHT Calculator module to your subscription in the ‘Plans’ section under ‘My Account’.  


Existing users

If you are already a CashCalc Premium subscriber, when you add a module to your account you will receive an invoice the next billing date. 

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Can I book a demo?

Can I book a demo?

We try to ensure CashCalc is as user-friendly and straightforward as possible, but we have a range of training options on offer.


You can:


  • Watch a pre-recorded demonstration
  • Book a 1-to-1 demonstration (£40 + VAT for a 30-minute session)
  • Book a free group demonstration
  • Arrange for one of our trainers to come and visit you 


Find out more info and book a demo in your CashCalc dashboard.

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Can I download a sample report?

Can I download a sample report?

You can access all of our sample reports in the 'Resources' section, which includes downloadable reports for our IHT tool.

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How much is the Inheritance Tax Calculator?

How much is the Inheritance Tax Calculator?

CashCalc is a modular system, meaning you can add different tools to create your own personalised suite. Our IHT Calculator is therefore an optional addition and can be purchased for £30 per-month + VAT per-adviser.


To access our IHT Calculator, you must be a user of the core ‘Cashflow & Onboarding’ module, which is the base functionality of CashCalc.


You can add the IHT Calculator module to your account or take a trial, in the ‘Plans’ section under ‘My Account’.


For more information on our Pricing plans, click here.